Article · 6 min read

Three Red Flags to Watch Out for in an Incubator

Tilda Yeow · Anthill Magazine Free Beginner

This one names the predatory pattern precisely: a program whose real business is charging you thousands to build your website with its in-house dev team, while it also holds equity, a straight conflict of interest. It documents founders locked into binding contracts paying over 100,000 dollars, and its core instruction backs our answer: interview past participants (it says roughly 80 percent of them), not just the two the program hand-picks for you.

  • A program that upsells its own paid in-house services (website, dev) while holding your equity has a built-in conflict of interest
  • Advisors with no discernible track record of working with startups mean the mentorship value proposition is hollow
  • Talk to a wide slice of past participants yourself, not the curated references the program offers

The question it answers

  1. How do I tell a genuinely good incubator or accelerator from one that just takes equity and gives nothing?

Read with it

  1. This is your actual question sheet: it tells you to interview program leadership about founder EXITS (not the staff's own... Entrepreneur Article · 7 min read Due Diligence on Accelerators: What Entrepreneurs Need to Know Wiley Larsen
  2. This is the benchmark to hold any private accelerator against. Under SISFS the government routes money to you THROUGH... Startup India (Seed Fund portal) Tool · portal About the Startup India Seed Fund Scheme (SISFS) DPIIT, Government of India
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